Niti Aayog Virmani promotes Chinese investment in Indian manufacturing

06 Aug 2024 CW Team

Virmani explained that if India is going to import goods from China for the next decade or more, it would be more beneficial to have Chinese companies establish operations in India and produce these goods domestically. This strategy, he noted, would align with the broader economic trade-offs.

With the US and Europe moving away from sourcing directly from China, Virmani argued that having Chinese companies invest in India could help the country tap into these markets more effectively. The Economic Survey emphasised that focusing on FDI rather than solely relying on trade could be a promising approach for boosting India?s exports, similar to strategies used by East Asian economies.

China is currently India's largest trading partner, with bilateral trade amounting to $118.4 billion in the fiscal year 2023-24. However, India has seen minimal FDI from China, which holds only a 0.37% share of the total FDI inflow. Tensions between the two nations, particularly after the Galwan Valley clash in June 2020, have impacted their economic relations. Despite these tensions, trade has continued to grow, with India's exports to China rising by 8.7% to $16.67 billion last fiscal year, while imports increased to $101.7 billion, widening the trade deficit to $85 billion.

Virmani believes that focusing on Chinese investment could be more advantageous for India than relying on imports, helping the country to better integrate into global supply chains and reduce its trade deficit.

(ET)

Arvind Virmani, a member of Niti Aayog, suggested that India should encourage Chinese firms to invest and manufacture goods locally rather than continuing to import them. His comments followed a pitch from the pre-budget Economic Survey on July 22, which proposed attracting foreign direct investment (FDI) from China to boost local manufacturing and enhance the export market. Virmani explained that if India is going to import goods from China for the next decade or more, it would be more beneficial to have Chinese companies establish operations in India and produce these goods domestically. This strategy, he noted, would align with the broader economic trade-offs. With the US and Europe moving away from sourcing directly from China, Virmani argued that having Chinese companies invest in India could help the country tap into these markets more effectively. The Economic Survey emphasised that focusing on FDI rather than solely relying on trade could be a promising approach for boosting India?s exports, similar to strategies used by East Asian economies. China is currently India's largest trading partner, with bilateral trade amounting to $118.4 billion in the fiscal year 2023-24. However, India has seen minimal FDI from China, which holds only a 0.37% share of the total FDI inflow. Tensions between the two nations, particularly after the Galwan Valley clash in June 2020, have impacted their economic relations. Despite these tensions, trade has continued to grow, with India's exports to China rising by 8.7% to $16.67 billion last fiscal year, while imports increased to $101.7 billion, widening the trade deficit to $85 billion. Virmani believes that focusing on Chinese investment could be more advantageous for India than relying on imports, helping the country to better integrate into global supply chains and reduce its trade deficit. (ET)

Resources

28 Apr 2025

Skyview by Empyrean is Making Benchmarks in the Indian Ropeway Industry

FIL Industries Private Limited, the parent company of Empyrean Skyview Projects that pioneered ropeway mobility solutions in India with Jammu’s Skyview Gondola, is currently developing the Dehradun-Mussoorie ropeway and is on track to complete Phase I by September 2026. The ropeway is set to be India’s longest passenger aerial monocable covering 5.8 km between the foothills of Dehradun in Purkulgam and MDDA taxi stand in the hills of Mussoorie in just under 20 minutes. The firm pioneered green mobility solutions in India with the development of the flagship Skyview Gondola in Jam..

Technology

28 Apr 2025

Creativity is for Humans, Productivity is for Robots!

On most construction sites, the rhythm of progress is measured by the clang of steel, the hum of machinery and the sweat of thousands. But increasingly, new sounds are entering the mix: the quiet efficiency of algorithms, the hum of drones overhead, and the precision of robotic arms at work. Behind the concrete and cables, an invisible force is taking hold: data. It is turning blueprints into living simulations, managing fleets of machines, and helping engineers make decisions before a single brick is laid. This is not the construction of tomorrow; it is the architecture of today – built on ..

Infrastructure Urban

28 Apr 2025

Bhartiya Urban Unveils ‘Bhartiya Converge’ GCC Enablement Platform

Bhartiya Urban has launched Bhartiya Converge, its latest business venture designed to become India’s premier platform for enabling Global Capability Centres (GCCs). The initiative offers an integrated ecosystem aimed at helping global clients gain a competitive edge in today’s rapidly evolving business environment. Focused on enhancing turnaround time and operational efficiencies, the company seeks to deliver better business outcomes powered by top-tier talent. Bhartiya Converge presents a customised and integrated suite of microservices that addresses the nuanced and evolving operational..

Niti Aayog Virmani promotes Chinese investment in Indian manufacturing

Skyview by Empyrean is Making Benchmarks in the Indian Ropeway Industry

Creativity is for Humans, Productivity is for Robots!

Bhartiya Urban Unveils ‘Bhartiya Converge’ GCC Enablement Platform

Latest Updates

Advertisement

Recommended for you

Advertisement

Subscribe to Our Newsletter

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Modal Heading

First Name *

Last Name *

Industry *

Email Address *

Mobile Number *

Password *

Confirm Password *

Subscribe to our Newsletter

Email Address *

Password *

Please enter the details

Email Address

Modal Heading

First Name *

Last Name *

Industry *

Email Address *

Mobile Number *

Password *

Confirm Password *

Subscribe to our Newsletter

Email Address *

Password *

Please enter the details

Email Address